Apple's New Strategy For India


Bangalore: Recently, with the release of iPhone 5 there were raising questions on why Apple is not finding Indian markets attractive. But the latest news about Apple’s change in strategy for its marketing in India is a welcome.     

The Wall Street Journal says Apple is aiming to make the devices available outside the direct sales of local carriers by opening up its product distribution to considerably larger network of sales partners in the country.

Apple’s market in India is small and on decline. According to IDC (International Data Corporation is a market research, analysis and advisory firm) Apple garnered just 1.2 percent of handset sales in the country between April and June. The numbers show Apple to be lagging far behind then its competitor Samsung.

Apple’s CEO Tim Cook offered an explanation during earnings conference call in July. He said that there’s complexity involved in sales of product in the country as it brings extra cost to product in comparison with U.S price.   

Apple did not put iPhone 5 in Indian market yet, and is rumored to be releasing by end of this month. However Journal adds that the device may cost around $854, the local equivalent. 

India is promising to be the big market for Smartphone makers in coming years. According to Cyber media (the specialty media house in South Asia, its in India's top five magazine brands), the Smartphone sales grew 87 percent between 2010and 2011, and about 11.2 million Smartphones are imported in last year. The data was given by the firm earlier this year.

The Journal states that the Smartphones may not be the main type of phones Indians are buying. Citing data from IDC, about 70 percent of the estimated handsets sales which is estimated to be 220 million in 2012, were costing less than $100. So $854 may not seem to tempt Indian buyers.